Petrol price on May 16 was increased by 24 paise per litre and diesel by 27 paise, pushing rates across the country to record highs. In several cities, Petrol prices crossed the Rs 100 per litre mark.
This was the ninth hike in 13 days, making petrol costlier by ₹2.18 and diesel by ₹2.49 a litre in less than two weeks since May 4.
As per a report by the Hindustan Times, the hike made petrol price cross Rs 100 a litre mark in several cities such as Ratnagiri, Parbhani, Aurangabad, Indore, Bhopal, Gwalior, Jaisalmer, Ganganagar and Banswara across Rajasthan, Maharashtra and Madhya Pradesh.
As per Indian Oil website, cities where petrol price crossed Rs 100 per litre include Ratnagiri (100.24/litre), Parbhani (over Rs 101/litre), Aurangabad (over Rs 100/litre), Indore (Rs 100.70/litre), Bhopal (Rs 100.63/litre), Gwalior (Rs 100.59/litre), Jaisalmer (Rs 101.52/litre), Ganganagar (Rs 103.52/litre) and Banswara (Rs 100.46/litre).
The price in Mumbai is also about to touch Rs 99 a litre. A litre of petrol in Mumbai now costs Rs 98.88 whereas diesel is priced at Rs 90.40 per litre.
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh and Maharashtra.
This is the ninth increase in prices since May 4 when the state-owned oil firms ended an 18-hiatus in rate revision they observed during assembly elections in states like West Bengal.
Sri Ganganagar district of Rajasthan had the costliest petrol and diesel in the country at Rs 103.52 per litre and Rs 95.99 a litre, respectively.
In nine increases, petrol price has risen by Rs 2.19 per litre and diesel by Rs 2.49.
As per the report, there are two key reasons for higher petrol and diesel rates one is high taxes on auto fuels and other a spike in international oil prices.
Central and state taxes make up for 60 percent of the retail selling price of petrol and over 54 percent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.